Haredi investors fear 'ilui' lost more than $30m

Ultra-Orthodox investors who placed their money with Asher Shapranovich, the manager of Homesh Hashkaot B'Aliya, are afraid their money has gone down the rabbit hole.

The Haredi Web site Kikar Shabbat reported that Shapranovich admitted to one investor on Monday that all the money had been lost a few months ago.

Shapranovich also said that he had managed a total of $30 million, although his worried investors believe the amount was much greater.

A bunch of disgruntled investors broke into his offices Monday in order to loot property, including computers. Police were called to stop them from making off with Shapranovich's assets.

Shapranovich himself had disappeared about a week ago. According to rumors in the Haredi community, he lost all of his investors' money and fled. Some even suggested he went into hiding after the Tax Authority began investigating his business. But then the self-proclaimed financial genius made a surprise visit to his office yesterday morning. All he would say to soothe worried investors was that he had not fled, and that he would issue a response later in the day.

"I can't provide any further details at the moment," he told TheMarker. "Right now I am speaking with the investors."

Later in the day, between meetings with investors, he told reporters that he had no time for interviews. "I have work to do. I need to see clients."

Shapranovich, who was well-known in the Haredi community, founded his investment firm six years ago and advertised widely in Haredi newspapers. He built himself an image as a financial genius, claiming he had a unique technique of foreign currency investments that guaranteed profit.

One investor said he had enjoyed quarterly yields averaging about 5%. Another told TheMarker that Shapranovich had promised a monthly yield of 1% to investors who demanded bank guarantees, and 6% to those who waived such guarantees.

Haredi investors placed a great deal of trust in Shapranovich. His investment house is named Homesh because he would donate 5% of profits to charity. He was particularly close to the Gur Hassids, and donated substantial sums. He also led an ostentatious lifestyle, and drove a Mercedes.

As far as is known, the Tax Authorities are not investigating Shapranovich, despite rumors. The Tax Authority itself declined to either confirm or deny the claims.

A spokesman for the Tel Aviv District police said they are not investigating the incident. Haredi investors apparently prefer not to let the authorities know the extent of their investments, and have not filed a complaint.